Azerbaijani population's demand for cash dollars increased by 47%

Baku. 24 February. REPORT.AZ/ Volume of net cash foreign currency sold to population increased by 47.4% and amounted to 8.8 billion USD in comparison with the previous year.

Report informs, referring to "Overview of the monetary policy," of the Central Bank, 50% USD and 29% EUR sold in I quarter of 2015.

According to the information, the sharp rise in demand in the currency market observed in the segments of both cash and non-cash currency.

"In 2015 there was a significant reduction in supply and a sharp increase in demand for foreign currency. Supply reduction due to the fall in world oil prices and the decline in foreign exchange earnings due to the deteriorating economic situation in the partner countries. There is a significant in the face of declining surplus in the balance of payments reduction in transfers by oil revenues, which is the main source of budget expenditure", said in the review.

Also noted that the sharp increase in demand for foreign currency is explained mainly with the growth of dollarization: "The sharp drop in oil prices on world markets and a wave of devaluations in the partner countries have strengthened expectations of devaluation of the national currency led to an increase in dollarization of the sharp increase in foreign currency demand. Demand was observed in the segments of both cash and non-cash currency."